Electricity generation and hydrogen production company Bloom Energy (NYSE: BE) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 57.1% year on year to $519 million. Its non-GAAP profit of $0.15 per share was 50.2% above analysts’ consensus estimates.

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Company Overview

Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Bloom Energy’s 19.1% annualized revenue growth over the last five years was incredible. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Bloom Energy’s annualized revenue growth of 12.4% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. Bloom Energy’s recent performance shows it’s one of the better Renewable Energy businesses as many of its peers faced declining sales because of cyclical headwinds.

We can better understand the company’s revenue dynamics by analyzing its most important segments, Product and Service, which are 74% and 11.3% of revenue. Over the last two years, Bloom Energy’s Product revenue (energy servers and electrolyzers) averaged 18.5% year-on-year growth while its Service revenue (operations and maintenance agreements) averaged 14.7% growth.

This quarter, Bloom Energy reported magnificent year-on-year revenue growth of 57.1%, and its $519 million of revenue beat Wall Street’s estimates by 23.3%.

Looking ahead, sell-side analysts expect revenue to grow 12.6% over the next 12 months, similar to its two-year rate. This projection is healthy and suggests the market is baking in success for its products and services.

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Operating Margin

Although Bloom Energy was profitable this quarter from an operational perspective, it’s generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 9% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out.

On the plus side, Bloom Energy’s operating margin rose by 17 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to show consistent profitability.

In Q3, Bloom Energy generated an operating margin profit margin of 1.5%, up 4.4 percentage points year on year. Since its gross margin expanded more than its operating margin, we can infer that leverage on its cost of sales was the primary driver behind the recently higher efficiency.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Bloom Energy’s full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it’s at an inflection point.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

Bloom Energy’s EPS grew at an astounding 386% compounded annual growth rate over the last two years, higher than its 12.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into the nuances of Bloom Energy’s earnings can give us a better understanding of its performance. Bloom Energy’s operating margin has expanded over the last two years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q3, Bloom Energy reported adjusted EPS of $0.15, up from negative $0.01 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Bloom Energy’s full-year EPS of $0.71 to grow 2.5%.

Key Takeaways from Bloom Energy’s Q3 Results

It was good to see Bloom Energy beat analysts’ revenue, EBITDA, and EPS expectations convincingly this quarter. Zooming out, we think this was a very good print with some key areas of upside. The stock traded up 4.4% to $118.30 immediately after reporting.

Indeed, Bloom Energy had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.